By: Woolley H.B. No. 1491
 
 
A BILL TO BE ENTITLED
AN ACT
relating to disclosure of certain relationships with local
government officers.
       BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
       SECTION 1.  Section 176.001, Local Government Code, is
amended by amending Subdivisions (1), (2), (3), (4), and (5) and
adding Subdivisions (1-a), (1-b), (1-c), (1-d), (2-a), (2-b), and
(6) to read as follows:
             (1)  "Agent" means a third party who undertakes to
transact some business or manage some affair for another person by
the authority or on account of the other person.
             (1-a)  "Business relationship" means a connection
between two or more parties based on commercial activity of one of
the parties.  The term does not include a connection based on:
                   (A)  a transaction that is subject to rate or fee
regulation by a federal, state, or local governmental entity or an
agency of a federal, state, or local governmental entity;
                   (B)  a transaction conducted at a price and
subject to terms available to the public; or
                   (C)  a purchase or lease of goods or services from
a person that is chartered by a state or federal agency and that is
subject to regular examination by, and reporting to, that agency.
             (1-b)  "Charter school" means an open-enrollment
charter school operating under Subchapter D, Chapter 12, Education
Code.
             (1-c)  "Commission" means the Texas Ethics Commission.
             (1-d)  "Contract" means a written agreement for the
sale or purchase of real property, goods, or services.
             (2)  "Family member" means a person related to another
person within the first degree by consanguinity or affinity, as
described by Subchapter B, Chapter 573, Government Code, except
that the term does not include a person who is considered to be
related to another person by affinity only as described by Section
573.024(b), Government Code.
             (2-a)  "Goods" means personal property.
             (2-b)  "Investment income" means dividends, capital
gains, or interest income generated from:
                   (A)  a personal or business:
                         (i)  checking or savings account;
                         (ii)  share draft or share account; or
                         (iii)  other similar account;
                   (B)  a personal or business investment; or
                   (C)  a personal or business loan.
             (3)  "Local governmental entity" means a county,
municipality, school district, charter school, junior college
district, or other political subdivision of this state or a local
government corporation, board, commission, district, or authority
to which a member is appointed by the commissioners court of a
county, the mayor of a municipality, or the governing body of a
municipality. The term does not include an association,
corporation, or organization of governmental entities organized to
provide to its members education, assistance, products, or services
or to represent its members before the legislative, administrative,
or judicial branches of the state or federal government.
             (4)  "Local government officer" means:
                   (A)  a member of the governing body of a local
governmental entity; [or]
                   (B)  a director, superintendent, administrator,
president, or other person designated as the executive officer of
the local governmental entity; or
                   (C)  an employee of a local governmental entity
with respect to whom the local governmental entity has, in
accordance with Section 176.005, extended the requirements of
Sections 176.003 and 176.004.
             (5)  "Records administrator" means the director,
county clerk, municipal secretary, superintendent, or other person
responsible for maintaining the records of the local governmental
entity or another person designated by the local governmental
entity to maintain statements and questionnaires filed under this
chapter and perform related functions.
             (6)  "Services" means skilled or unskilled labor or
professional services, as defined by Section 2254.002, Government
Code.
       SECTION 2.  Section 176.002(a), Local Government Code, is
amended to read as follows:
       (a)  This chapter applies to a person who:
             (1)  enters [contracts] or seeks to enter into a
contract [for the sale or purchase of property, goods, or services]
with a local governmental entity; or
             (2)  is an agent of a person described by Subdivision
(1) in the person's business with a local governmental entity.
       SECTION 3.  Section 176.003, Local Government Code, is
amended by amending Subsections (a) and (d) and adding Subsection
(a-1) to read as follows:
       (a)  A local government officer shall file a conflicts
disclosure statement with respect to a person described by Section
176.002(a) if:
             (1)  the person enters into a contract [has contracted]
with the local governmental entity or the local governmental entity
is considering entering into a contract [doing business] with the
person; and
             (2)  the person:
                   (A)  has an employment or other business
relationship with the local government officer or a family member
of the officer that results in the officer or family member
receiving taxable income, other than investment income, that
exceeds $2,500 during the 12-month period preceding the date that
the officer becomes aware that:
                         (i)  a contract described by Subdivision (1)
has been executed; or
                         (ii)  the local governmental entity is
considering entering into a contract with the person; or
                   (B)  has given to the local government officer or
a family member of the officer one or more gifts[, other than gifts
of food, lodging, transportation, or entertainment accepted as a
guest,] that have an aggregate value of more than $250 in the
12-month period preceding the date the officer becomes aware that:
                         (i)  a contract described by Subdivision (1)
has been executed; or
                         (ii)  the local governmental entity is
considering entering into a contract [doing business] with the
person.
       (a-1)  A local government officer is not required to file a
conflicts disclosure statement in relation to a gift accepted by
the officer or a family member of the officer if the gift is:
             (1)  given by a family member of the person accepting
the gift;
             (2)  a political contribution as defined by Title 15,
Election Code; or
             (3)  food, lodging, transportation, or entertainment
accepted as a guest.
       (d)  It is an exception to the application of [a defense to
prosecution under] Subsection (c) that the person filed the
required conflicts disclosure statement not later than the seventh
business day after the date the person received notice from the
local governmental entity of the alleged violation.
       SECTION 4.  Section 176.004, Local Government Code, is
amended to read as follows:
       Sec. 176.004.  CONTENTS OF DISCLOSURE STATEMENT.  The
commission shall adopt the conflicts disclosure statement for local
government officers. The conflicts disclosure statement must
include:
             (1)  a requirement that each local government officer
disclose:
                   (A)  an employment or other business relationship
described by Section 176.003(a), including the nature and extent of
the relationship; and
                   (B)  gifts accepted [received] by the local
government officer and any family member of the officer from a
person described by Section 176.002(a) during the 12-month period
described by Section 176.003(a)(2)(B) if the aggregate value of the
gifts, excluding gifts described by Section 176.003(a-1), accepted
by the officer or a family member from that person exceed $250;
             (2)  an acknowledgment from the local government
officer that:
                   (A)  the disclosure applies to each family member
of the officer; and
                   (B)  the statement covers the 12-month period
described by Section 176.003(a) [176.003(a)(2)(B)]; and
             (3)  the signature of the local government officer
acknowledging that the statement is made under oath under penalty
of perjury.
       SECTION 5.  Sections 176.005(a), (b), and (d), Local
Government Code, are amended to read as follows:
       (a)  The local governmental entity may extend the
requirements of Sections 176.003 and 176.004 to any employee [all
or a group of the employees] of the local governmental entity who
has the authority to approve contracts on behalf of the local
governmental entity, including a person designated as the
representative of the local governmental entity for purposes of
Chapter 271.  The local governmental entity shall identify each
employee made subject to Sections 176.003 and 176.004 under this
subsection and shall provide a list of the identified employees on
request to any person.
       (b)  A local governmental entity may reprimand, suspend, or
terminate the employment of an employee who knowingly fails to
comply with a requirement adopted under this section.
       (d)  It is an exception to the application of [a defense to
prosecution under] Subsection (c) that the person filed the
required conflicts disclosure statement not later than the seventh
business day after the date the person received notice from the
local governmental entity of the alleged violation.
       SECTION 6.  Section 176.006, Local Government Code, is
amended to read as follows:
       Sec. 176.006.  DISCLOSURE REQUIREMENTS FOR VENDORS AND OTHER
PERSONS; QUESTIONNAIRE.  (a)  A person described by Section
176.002(a) shall file a completed conflict of interest
questionnaire if the person has a business relationship with a
local governmental entity and:
             (1)  has an employment or other business relationship
with an officer of that local governmental entity, or a family
member of the officer, described by Section 176.003(a)(2)(A); or
             (2)  has given an officer of that local governmental
entity, or a family member of the officer, one or more gifts with
the aggregate value specified by Section 176.003(a)(2)(B),
excluding any gift described by Section 176.003(a-1).
       (a-1)  The completed conflict of interest questionnaire must
be filed with the appropriate records administrator not later than
the seventh business day after the later of:
             (1)  the date that the person:
                   (A) [(1)]  begins [contract] discussions or
negotiations to enter into a contract with the local governmental
entity; or
                   (B) [(2)]  submits to the local governmental
entity an application, response to a request for proposals or bids,
correspondence, or another writing related to a potential contract
[agreement] with the local governmental entity; or
             (2)  the date the person becomes aware:
                   (A)  of an employment or other business
relationship with a local government officer, or a family member of
the officer, described by Subsection (a); or
                   (B)  that the person has given one or more gifts
described by Subsection (a).
       (b)  The commission shall adopt a conflict of interest
questionnaire for use under this section that requires disclosure
of a person's [affiliations or] business relationships [that might
cause a conflict of interest] with a local governmental entity.
       (c)  The questionnaire adopted under Subsection (b) must
require, for the local governmental entity with respect to which
the questionnaire is filed, that the person filing the
questionnaire:
             (1)  describe each employment [affiliation] or
business relationship the person has with each local government
officer of the local governmental entity;
             (2)  identify each employment [affiliation] or
business relationship described by Subdivision (1) with respect to
which the local government officer receives, or is likely to
receive, taxable income, other than investment income, from the
person filing the questionnaire;
             (3)  identify each employment [affiliation] or
business relationship described by Subdivision (1) with respect to
which the person filing the questionnaire receives, or is likely to
receive, taxable income, other than investment income, that:
                   (A)  is received from, or at the direction of, a
local government officer of the local governmental entity; and
                   (B)  is not received from the local governmental
entity; and
             (4)  describe each employment [affiliation] or
business relationship with a corporation or other business entity
with respect to which a local government officer of the local
governmental entity:
                   (A)  serves as an officer or director; or
                   (B)  holds an ownership interest of 10 percent or
more.[;
             [(5)  describe each affiliation or business
relationship with an employee or contractor of the local
governmental entity who makes recommendations to a local government
officer of the local governmental entity with respect to the
expenditure of money;
             [(6)  describe each affiliation or business
relationship with a person who:
                   [(A)is a local government officer; and
                   [(B)  appoints or employs a local government
officer of the local governmental entity that is the subject of the
questionnaire; and
             [(7)  describe any other affiliation or business
relationship that might cause a conflict of interest.]
       (d)  A person described by Subsection (a) shall file an
updated completed questionnaire with the appropriate records
administrator not later than[:
             [(1)  September 1 of each year in which an activity
described by Subsection (a) is pending; and
             [(2)]  the seventh business day after the date of an
event that would make a statement in the questionnaire incomplete
or inaccurate.
       (e)  A person is not required to file an updated completed
questionnaire under Subsection (d)(1) in a year if the person has
filed a questionnaire under Subsection (c) or (d)(2) on or after
June 1, but before September 1, of that year.
       (f)  A person commits an offense if the person knowingly
violates this section. An offense under this subsection is a Class
C misdemeanor.
       (g)  It is an exception to the application of [a defense to
prosecution under] Subsection (f) that the person filed the
required questionnaire not later than the seventh business day
after the date the person received notice from the local
governmental entity of the alleged violation.
       (h)  A local governmental entity does not have a duty to
ensure that a person described by Section 176.002 files a conflict
of interest questionnaire.
       (i)  The validity of a contract between a person described by
Section 176.002 and a local governmental entity is not affected
solely because the person fails to comply with this section.
       SECTION 7.  Section 176.009(a), Local Government Code, is
amended to read as follows:
       (a)  A local governmental entity that maintains an Internet
website shall provide access to the statements and to 
questionnaires required to be filed under this chapter on that [the
Internet] website [maintained by the local governmental entity].  
This subsection does not require a local governmental entity to
maintain an Internet website.
       SECTION 8.  Chapter 176, Local Government Code, is amended
by adding Sections 176.011 and 176.012 to read as follows:
       Sec. 176.011.  MAINTENANCE OF RECORDS.  A records
administrator shall maintain the statements and questionnaires
that are required to be filed under this chapter in accordance with
the local governmental entity's records retention schedule.
       Sec. 176.012.  APPLICATION OF PUBLIC INFORMATION LAW.  This
chapter does not require a local governmental entity to disclose
any information that is excepted from disclosure by Chapter 552,
Government Code.
       SECTION 9.  Section 176.006(e), Local Government Code, is
repealed.
       SECTION 10.  Not later than October 1, 2007, the Texas Ethics
Commission shall adopt a conflicts disclosure statement consistent
with Section 176.004, Local Government Code, as amended by this
Act, and a conflict of interest questionnaire consistent with
Section 176.006, Local Government Code, as amended by this Act.
       SECTION 11.  (a)  Notwithstanding Chapter 176, Local
Government Code, a person is not required to file a conflicts
disclosure statement or a conflict of interest questionnaire under
that chapter during the period that begins on the effective date of
this Act and ends September 30, 2007.
       (b)  A person who, in the absence of Subsection (a) of this
section, would have been required to file a conflicts disclosure
statement or a conflict of interest questionnaire during the period
specified by that subsection shall file the statement or
questionnaire in accordance with Chapter 176, Local Government
Code, as amended by this Act, not later than the later of:
             (1)  October 9, 2007; or
             (2)  the seventh day after the date the person received
notice from the local governmental entity that the statement or
questionnaire was required to be filed.
       SECTION 12.  The change in law made by this Act applies only
to an offense committed on or after the effective date of this Act.
An offense committed before the effective date of this Act is
covered by the law in effect when the offense was committed, and the
former law is continued in effect for that purpose. For purposes of
this section, an offense was committed before the effective date of
this Act if any element of the offense was committed before that
date.
       SECTION 13.  This Act takes effect immediately if it
receives a vote of two-thirds of all the members elected to each
house, as provided by Section 39, Article III, Texas Constitution.  
If this Act does not receive the vote necessary for immediate
effect, this Act takes effect September 1, 2007.